2005-08-25 CITY COUNCIL PUBLIC HEARING MEETING MINUTESMINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON AUGUST 25, 2005, AT 6:30 P.M., IN THE COUNCIL
CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the public hearing to order at 6:30 p.m. with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
City Manager
City Secretary
Tom Reid
Kevin Cole
Richard Tetens
Woody Owens
Bill Eisen
Young Lorfing
Absent: Councilmembers Larry Marcott and Charles Viktorin
Others in attendance: Director of Finance Andrea Gardner and Deputy City Attorney
Nghiem Doan.
PURPOSE OF HEARING — 2005 PROPERTY TAX INCREASE. Mr. Bill Eisen, City
Manager.
STAFF REVIEW
Bill Eisen City Manager stated this is the first of two public hearings that will be held on
the Tax Rate. The second public hearing will be next Monday, August 29, 2005, at 6:30
p.m. There will also be a public hearing on the same day for the proposed FY 2005-
2006 Budget. The proposed tax rate for the next fiscal year is expected to be $0.6744/
$100 valuation. By State Law, the City is required each year to calculate the Effective
Tax Rate. Mr. Eisen reported $0.36/$100 valuation will go to debt service for obligations
the City will be incurring over the next fiscal year. In addition to the $0.36/$100
valuation, $0.3144/$100 valuation will be used for operations and maintenance of the
City. He stated there is a 3% average raise for all civilian employees of the City,
depending on the individuals' performance. Also, Police personnel receive an average
2Y2% adjustment. The one thing impacting the budget this year is the annexation of
Municipal Utility District Number 5, which is the Southdown and Crystal Lake
Subdivisions. The annexation of these subdivisions will be an increase of 5,000 people
in the City of Pearland. In the proposed budget there will be a 7% increase in personnel
and a 21% increase in the overall population of the City. A few things that would be
added in the proposed budget will include new vehicles, replacement of equipment and
vehicles, personnel for various departments, $300,000 for miscellaneous drainage
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improvements throughout the City and the Police Department has requested three more
motorcycle units for traffic patrol.
CITIZENS COMMENTS
Michael Klaus, 5016 Groveton addressed Council and stated a lot of things that involve
the government deserve to be reviewed every so often. It would be beneficial for
Pearland to go back to zero and see how the City is approaching government. He also
stated that the amount of decrease in taxes is about four times what will be provided in
the senior citizens tax freeze. There is no comparison showing what the rate of
increase in the City's income was over the last few years in comparison to what they are
saying they are going to lose in the next five years.
COUNCIL/STAFF DISCUSSION
City Manager, Bill Eisen stated there are two components of a property tax bill; one is
property tax and the other is the valuation of property and what it is appraisal. The
impact of the reduction could be tempered some and depending on what an individual's
reappraisal was, their taxes could go down, go up, or stay the same.
Mayor Reid stated State Legislation requires all property be brought up to market value.
Once market value is reached, the appraised value will not increase.
Mayor Pro -Tem Cole asked for a breakdown of how many, and specifically what areas
of the City, received a reappraisal.
City Manager Bill Eisen stated he would find out what changes occurred and the
reasons for the change.
Councilmember Owens stated tonight was one of the largest crowds in over five years.
He also stated that every year the budget increases with the growth and the City has no
control of the evaluation of property. He stated he supported buying more motorcycles
because the two the City has easily paid for themselves.
Mayor Pro -Tem Cole added the residents should keep in mind that the City is going to
have an additional five thousand people towards the end of the year. Services will start
immediately when the future residents are annexed into the City. The new residents will
not pay property tax until the end of 2006. The debt service over the years has gone
up, and the city has tried to off set it by keeping the maintenance and operation down as
much as possible.
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City Manager Bill Eisen stated four years ago the tax rate was $0.68/$100 valuation;
$0.43/$100 valuation went to operations and the remainder went to debt services. Now
out of about $0.674/$100 valuation, $0.314/$100 valuation is for operation and the
remainder is for debt services. What has happened is the tax rate that goes toward
operating the City on a day-to-day basis is decreasing as a percentage of total revenue.
Mayor Reid stated the Council has a full day retreat each year. During the retreat, the
Council put together their priorities for the upcoming year. The City Manager uses
those priorities to establish the budget we have today. He stated the City Manager
followed the priorities established by the Council at the last year's retreat.
ADJOURNMENT
Meeting was adjourned at 6:50 p.m.
Minutes approved as submitted and/or corrected this the 1ot" day of October, A.D.,
2005.
ATTEST:
om eid
Mayor
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